The Levelling Up, Housing and Communities Committee has launched an inquiry into levelling up funding following a “lack of information” on the financing available to councils.
Committee chair Clive Betts said that the inquiry would examine questions involving the allocation of levelling-up resources and the aim, size and focus of the many different funds available. This includes the UK Shared Prosperity Fund (UKSPF) and the European Structural and Investment Fund (ESIF).
The inquiry will also evaluate the government’s actions in ensuring that levelling up funds are fairly distributed, strengthen communities and boost local economies.
Betts stressed that it was crucial that ministers are held to account for levelling up policies. However, “the complex landscape of levelling-up funding and grants allocated by the Department for Levelling Up, Housing and Communities and other government departments makes scrutiny of this spending and investment difficult”.
He continued: “Crucially, the competitive bidding processes in many of these funds bring challenges which discourages local areas from even applying.”
An overarching consequence of this lack of information is that local areas and regions are unable to plan as they are only being allocated small, short-term, pots and have limited information regarding future allocations.
Limited information
In a letter to chancellor Jeremy Hunt, Betts highlighted the committee’s concerns regarding the limited amount of information on ESIF funding available from 2020 onwards.
The UKSPF is the government’s domestic replacement for ESIF, which the UK will continue to participate in until 2023. This fund is essential for local regeneration, employment and skills.
Betts said: “We are also concerned that this forms part of a more widespread lack of information surrounding the amount of funding available across government departments which are involved in levelling up and its funding.
“An overarching consequence of this lack of information is that local areas and regions are unable to plan as they are only being allocated small, short-term, pots and have limited information regarding future allocations.”
In a second letter to the minister for levelling up, Dehenna Davison, Betts detailed that in light of The Growth Plan, announced by former chancellor Kwasi Kwarteng on 23 September, it would be helpful to understand how investment zones will be funded.
The zones offer lower taxes and streamlined planning rules for specific areas, and are intended to boost funding and development in both commercial and residential projects.
Betts said: “This includes speculation about whether or not existing funding pots will be combined in order to streamline funding for the zones and whether the zones will be funded through additional or existing funding allocations for levelling up.”
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